Can you pay spring semester tuition in 2 tax years and claim American Education credit in both years?

[dye-driver0e]

My question is whether you can split spring semester fee by paying half amount in December and half payment in January (spring semester starting) and  still claim the American Education credit for both tax years. For example, the Spring semester fee is $5000. If I pay $2500 in December 2024 and the other $2500 in January 2025 before deadline, would the $2500 paid in December 2024 be included in 1098T for 2024 and the other $2500 be included in 1098T? for 2025 tax year  Would I able to claim American education credit in both tax years 2024 & 2025 for the amounts paid in those 2 years? Thanks in advance.

[Bsch4477 · Accepted solution]

Yes, the expense paid in 2024 is claimed on your 2024 return and that in 2925 claimed on that year’s return. But remember that you can only claim AOC 4 times. 

[Hal_Al]

Q. Can you pay a semester's tuition in 2 tax years and claim American Education credit in both years?

A. Yes, but only in the special situation you describe.   "Generally, the credit is allowed for adjusted qualified education expenses paid in 2024 for an academic period beginning in 2024 or beginning in the first 3 months of 2025" (Pub 970, pg 12).

As an example of what you can NOT do: You graduated in 2023, but  didn't pay some of your 2023 tuition bill until January 2024. You cannot claim a tuition credit in 2024.  You also cannot use the 2024 payment to claim a tuition credit on your 2023 tax return.